Match each of the following stockholders' equity concepts to the appropriate term (a-h).
-A legal entity, separate from the people who create and operate it
A)Articles of incorporation
B)Limited liability
C)Bylaws
D)Corporation
E)Public corporation
F)Board of directors
G)Private corporation
H)Dividends

Question

Quizplus · Accepted Answer

Stockholders' equity concepts are related to corporations, so the appropriate term is "Corporation" which is a legal entity separate from the people who create and operate it.

Answer: B
 Limited liability is a concept that protects the personal assets of stockholders from the liabilities of the corporation.

Answer: C
 Bylaws are the rules and regulations established by the corporation for its internal governance.

Answer: G
 A private corporation is owned by a small group of individuals and is not publicly traded on the stock market.

Answer: E
 A public corporation is owned by many shareholders and is publicly traded on the stock market.

Answer: F
 The board of directors is the group of individuals elected by the stockholders to oversee the management of the corporation.

Answer: H
 Dividends are payments made by the corporation to its stockholders out of its earnings or profits.

Answer: A
 Articles of incorporation are legal documents that establish the existence of the corporation and define its basic purpose and powers.

Match Each of the Following Stockholders' Equity Concepts to the Appropriate